“The practical result has been the systematic exploitation of American farmers, ranchers, manufacturers, and workers through higher tariffs institutionalized by MFN. In turn, this unfair and nonreciprocal trade has resulted in chronic U.S. trade deficits with much of the rest of the world. This systemic trade imbalance serves as a brake and bridle on both GDP growth and real wages in the American economy while encumbering the U.S. with significant foreign debt.”
Citation: Project 2025, Section 4.6: Trade, Peter Navarro, page 798, paragraph 4
Context:
Ah, yes. More classic “not understanding what trade deficits are.”1 The claim that U.S. trade deficits are a direct result of “unfair and nonreciprocal” trade practices under MFN is a misrepresentation of the causes of trade deficits.
What really happened, is that Trump introduced punishing tariffs that were in violation of WTO rules, which resulted in harm to farmers, ranchers, manufacturers, and workers. Navarro is working really hard to shift the blame, and not very convincingly. This is explained in the analysis below.
Full contextual analysis of Section 4.6: Trade here.
Section: Section 4.6: Trade